TPG Holdings has taken a "significant minority stake" using balance sheet capital in NewQuest Capital Partners, a firm that invests in the alternative investment secondary market in Asia-Pacific, both firms confirmed in written statements.
Terms of the deal were not disclosed. This is TPG's first venture into the global alternative secondary markets.
"In partnering with NewQuest, we see an opportunity to back a highly experienced team with a differentiated strategy and leading position in Asia's rapidly growing secondary market," said Jon Winkelried, co-CEO of TPG, in a statement.
The transaction gives NewQuest access to TPG's business capabilities.
"Through the partnership, we gain access to resources and expertise from across the TPG platform to enhance the NewQuest business," said Darren Massara, managing partner at NewQuest, in a separate statement. "We look forward to working with TPG to expand our platform and create new opportunities for our investors."
NewQuest was formed in 2011 from a spinout of Bank of America Merrill Lynch's Asia private equity team led by Mr. Massara. At the time, BofA Merrill Lynch sold its $400 million private equity portfolio in Asia to a syndicate comprising private equity firms Paul Capital, HarbourVest Partners, LGT Capital Partners and Axiom Asia Private Capital. The four firms were the sole limited partners in NewQuest's first fund.
NewQuest currently manages three funds with $1.25 billion in total commitments.
